Asset Allocation

1. How to plan your Equity Allocation for 2021?

2. Where do we stand today?

3. Covid 19 – No Resurgence After First Wave, Vaccinations Underway • There are no signs of a second wave • Government has approved Oxford-AstraZeneca (manufactured by Serum Institute India) & Bharat Biotech’s (Local player) Vaccines for India • Vaccination started from Jan 16, 2021 • Government plans to vaccinate 300 mln people by August 2021 Source: John Hopkins University

4. Down, Down Down…but Glimmers Of Hope With Newest Reading Showcasing Indian Economy’s Resilience Source: Bloomberg, as of September 30, 2020. Note: The numbers in red circle are from a changed data series starting Jan 2015. While a “superior” series, there is no comparable number to equate the “New” with the “Old”. Most economists deduct 0% to 1.5% from the “New” to equate to the “Old”. Or you need to add 0% to 1.5% to equate the “old” to the “New”.

5. Economic Activity vs Pre-COVID levels Source: CMIE, Bloomberg, QAMC Research Economic activity in some sectors at 90% and in some sectors above pre-COVID levels

6. Economic Activity vs Pre-COVID levels Source: CMIE, Bloomberg, QAMC Research Economic activity in some sectors at 90% and in some sectors above pre-COVID levels

7. Government Has Loosened the Fiscal Tap to Stimulate Demand Source: Budget Documents, As of February 2021

8. Estimates Have Corrected, Stage Set For Double-Digit Growth The Next Two Fiscal Years Data as of January 2021 Source: Bloomberg

9. Foreign Capital Pouring In, As Locals Turn Cautious Data as of January 2021 Source: Sebi.gov.in, NDSL,Past Performance may or may not sustained in future.

10. Spiking PER Overstates Valuation Given The Prior Quarter’s Gap Down • Source: Bloomberg. Data as on January 31st 2021. Past Performance may or may not sustained in future.

11. 11 Factors Conducive for a Revival in Real Estate….. Home Loan Rates at Two Decade Low HDFC ‘rack rate’ for home loans in the Rs3-7.5 Mlnticket size Source: QAMC Research, , As on Dec 2020 Reduction in duties + Lower EMI + Decreasing prices have improved affordability by ~20% !

12. Demand Has Surprised Positively, Government Has Chosen to Spend its Way to a Recovery • Economic activity has recovered to ~90-100% of pre COVID levels as demand has surprised positively • 2 decade low interest rates, decrease in prices and cut in transaction charges in select states has improved Real estate affordability, leading to an uptick in transactions • Budget - Government has chosen to spend on Infrastructure, Healthcare & Sanitation to try and stimulate demand further at the cost of fiscal discipline. • Fiscal deficit is expected to remain high over the next five years (4.8% for 2026)

13. Risk to the Recovery • Emergence of a Second Wave of COVID Cases could derail economic recovery • Job Losses amongst salaried employees and Rising Inflation may impact consumer discretionary spend • Real stress in the Banking sector has yet to be revealed as recognition of bad loans has been deferred after a Supreme court order • Government finances remains under stress and may not have too much room to stimulate if economic environment worsens

14. Equity Outlook for 2021

15. Scenarios To Ponder Most Likely Scenario

16. Previous Peaks look like Small Hills Now Tech Boom Data as on 9th February 2021. Source: Bloomberg. Past performance may or may not sustained in future.

17. Timing the Markets is a Myth Source: Bloomberg Past performance may or may not sustained in future. Based on BSE Sensex Returns are calculated on the basis of Compounded Annualized Growth Rate (CAGR)

18. 18 There have been years when equity markets had a brilliant run, years when only bonds were dependable, and years when gold shined the brightest, and these periods did not typically overlap Ignore Asset Allocation at your own Peril • Past performance may or may not sustained in future • The chart ranks the best to worst performing indexes per calendar year from top to bottom • Data as of December 2020 • Past performance may or may not be sustained in future. • Based on S&P BSE Sensex; Domestic Gold prices and • CRISIL Composite Bond Fund Index • Source: Bloomberg Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed?

19. 2021- Trying to Time Markets is a Folly Follow a Simple Asset Allocation Strategy to Deal with Market Cycles Your Savings ₹ Wealth Builder Stress case scenario protection Keep 6-24 months of expenses in Liquid Fund, Bank Fixed Deposit to be withdrawn in case of emergency Please note that the above is the suggested fund allocation only and is not to be considered as investment advice / recommendation, please seek independent professional advice and arrive at an informed investment decision before making any investments

20. Disclaimer – Terms of Use The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required. Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956. 12th February 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.